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What Is Additional Living Expense Coverage

Did you know that your homeowner insurance policy can protect you from a whole lot more than just physical damage to your property and liability claims? In most home, policies, additional living expense coverage is included which can help cover expenses related to when you are forced to leave your home as a result of an insured loss or evacuation.

Additional living expense coverage is comprised of three main components.

Fair Rental Value

If you were renting out a portion of your home before the loss occurred and it is deemed unsafe for your renters to reside in their unit while repairs are being performed, your policy may cover a portion of your lost rental income.

Additional Living Expenses

Will cover reasonable expenses and costs that you would not normally incur if you were living in your own home. These can include hotel or accommodation charges, food, and meals.

Prohibited Access

If an emergency happened at a neighbor’s home which forces you to leave your home, or you are faced with a government issued evacuation (such as a wildfire) this would help pay for additional living expenses incurred as a result of having to leave your home.

Coverage does vary by provider and is subject to your policy limits, terms, and conditions. In most cases, the combined limit of all three categories above will account for a certain percentage of your overall policy limit.

What is Not Covered?

If you are faced with having to leave your home as a result of an emergency evacuation or covered loss, additional living expenses coverage will help you maintain a reasonable standard of living by covering additional expenses that you would not normally face on a daily basis. It will not, however, cover a better standard of living. For example, if your temporary location was equipped with a kitchen, it would not cover the cost of eating out for meals as groceries would be considered a normal living expense.

To find out more about additional living expenses coverage and to find the best rate for your home insurance, contact an experienced member of the Bow Valley Insurance team today.